Ageing of the population
Ageing of the population is an ongoing and non-cyclical thematic drawing on the considerable potential growth of the Silver Economy.
Why invest in the ageing of the population?
The 20th century witnessed a major revolution – the demographic transition. The infant mortality rate has dropped steeply and life expectancy at birth has risen by 35 years in a little more than one century. Meanwhile, the fertility rate almost halved between 1950 and 2000.
If current demographic trends continue, the share of the world population at least 65 years of age is likely to rise from 10% in 2022 to 16% in 2050.
Many developed countries will have to deal this challenge in the coming years or decades. The ageing of the population is at a less advanced stage in emerging market economies but will accelerate in developed market economies. By 2050, 80% of the aged population will be living in emerging economies.
China will be the first of them to face the “ageing challenge”, with the number of its retirees expected to rise by 10% to 25% over the next 15 years.
Tap into ageing to give your investments
youthful vigour
The investment universe
Our approach
In developed economies, purchasing power is highest when people retire. We therefore built up an investment universe based on the prism of consumer spending by “seniors”, which we have identified in two separate segments:
- Younger retired persons who are still active and have relatively high purchasing power and who wish to preserve their assets while caring for their well-being.
- The elderly, whose needs are more closely related to healthcare and dependence services.
This segmentation allows us to position ourselves over a broad variety of sectors exposed to this population. We thus obtain a well-diversified investment universe of more than 600 companies in eight sectors.
The universe that we have built offers significant advantages over the equity markets as a whole, including:
- Stronger growth in sales and income;
- An ability to cushion downward trends and to accelerate upside trends in results.
To integrate this investment universe, a company must generate a large portion of its revenues from the ageing population.
The main risks incurred by this strategy are the risk of loss of capital, equity risk, interest-rate risk, credit risk, and exchange rate risks. To find out more about the fund’s risk profile, please refer to its legal documentation.
